W.H. aides debated Solyndra visit

Top White House officials debated the political implications of President Barack Obama’s May 2010 visit to Solyndra, just before his trip to the California solar company, after hearing from one of Obama’s top 2008 fundraisers, according to internal email excerpts released Monday by House Democrats.

“A number of us are concerned that the president is visiting Solyndra,” Westly wrote White House senior adviser Valerie Jarrett on May 24, 2010. “There is an increasing concern about the company because their auditors, Coopers & Lybrand, have issued a ‘going concern’ letter. … Many of us believe the company’s cost structure will make it difficult for them to survive long term.”

Westly urged Jarrett to check with the Energy Department “to make sure they’re comfortable” with Solyndra.

“I just want to help protect the president from anything that could result in negative or unfair press,” Westly wrote. “If it’s too late to change/postpone the meeting, the president should be careful about unrealistic/optimistic forecasts that could haunt him in the next 18 months if Solyndra hits the wall, files for bankruptcy, etc.”

Jarrett forwarded Westly’s concerns to Ron Klain, Vice President Joe Biden’s chief of staff, who replied to her, “We clearly need to make sure that they are stable and solid.”

That same day, DoE’s stimulus point man, Matt Rogers, defended Solyndra in an email to Klain. “The ‘going concern’ letter is standard for companies pre-IPO,” Rogers wrote, adding, “the company should be strong going into the fall with their new facilities on line.”

Rod O’Connor, who was Energy Secretary Steven Chu’s chief of staff at the time, also chimed in to Klain. “Bottom line is that we believe the company is OK in the medium term but will need some help of one kind or another down the road,” O’Connor wrote.

Klain then sent the two comments from the DoE officials to Jarrett with a recommendation that Obama participate in the event at Solyndra.

“Sounds like there are some risk factors here — but that’s true of any innovative company that POTUS would visit,” Klain wrote. “It looks like it is OK to me, but if you feel otherwise, let me know.”

“I’m comfortable if you’re comfortable,” Jarrett replied.

Klain responded, “The reality is that if POTUS visited 10 such places over the next 10 months, probably a few will be belly-up by Election Day 2012 — but that to me is the reality of saying that we want to help promote cutting-edge, new economy industries.”

Obama’s remarks to the Bay Area solar company — “the true engine of economic growth will always be companies like Solyndra” — have been cited repeatedly as House Republicans investigate whether the administration rushed to approve the solar company’s $535 million loan guarantee.

Two unnamed Office of Management and Budget officials also raised alarms about Obama’s trip to Solyndra. One wrote on May 21, “Hope [it] doesn’t default before then.”

Another added on May 24, “I am increasingly worried that this visit could prove embarrassing to the administration in the not too distant future, given 1) what we just heard today from DoE that Solyndra is delaying its IPO at least until the end of the year, and 2) what the auditors said about Solyndra making it through the year absent new financing.”